Tax Reform – Potential Year-End Planning Tips

Our political leaders in Washington are suggesting significant tax law changes that many experts are predicting will take effect in 2018. One of the biggest changes deals with who benefits from itemized deductions. Based on the bills that are currently being debated in Congress, it appears likely that many taxpayers who itemized deductions in the past will no longer get a benefit from their deductions. This means that for some middle class taxpayers, 2017 may be the final year to get a benefit from paying:

– Real Estate Tax

– State Income Tax

– Charitable Contributions

– Mortgage Interest

– Medical Expenses

For example, here are some year end moves that may save taxes by maximizing deductions in 2017:

– Pay real estate tax bills before December 31, 2017

– Prepay some or all of your Wisconsin income tax for 2018 by making a payment before December 31, 2017

– Make charitable contributions in 2017 instead of 2018

– Pay mortgage payment for January 2018 in December 2017

A word of caution before you take action: Prepaying deductible expenses doesn’t work for everyone, so please give KerberRose, CPA’s a call to discuss how the proposed tax law changes are likely to affect you.

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